Rumors aim 'to topple government'

JAKARTA (JP): President Soeharto said yesterday rumors that his health was failing, he was dead, or that the Armed Forces were planning a coup, were aimed at destabilizing the economy and toppling the government.

The President accused "certain groups" of attempting to create monetary chaos so as to create a lack of confidence in the government as a part of their political strategy.

"There were rumors that I had died, and had been detained, and that a coup had taken place, which were aimed at weakening the rupiah... to bolster people's distrust of the government and eventually to create a revolution," Soeharto said in a dialog with the country's top 57 businessmen at the Bina Graha presidential office.

Soeharto called for Indonesian entrepreneurs to work shoulder to shoulder with the government to overcome the crisis, and vowed that he would do everything to help the private sector, which is the country's economic backbone.

"I have ordered ministers to approach the private sector to work jointly to resolve the ongoing monetary crisis with the government, because it is not only the government's responsibility but also the entrepreneurs," Soeharto said.

Yesterday's meeting was Soeharto's second official appearance since doctors ordered him to rest earlier this month to regain his physical fitness after an exhausting overseas trip last month.

Last week he attended a graduation ceremony at Indonesia's Military Academy at Merdeka Palace, during which he warned the public against attempting to "fish in murky waters" -- exploiting the current crisis to further one's interests.

In an attempt to revive the ailing economy and to bolster public savings, Soeharto said yesterday that the government was considering offering higher interest rates on U.S. bank notes than are offered offshore.

This is expected to encourage people to deposit their money in national banks.

"If they do not believe in the rupiah, we will issue notes in dollars. We are still making all necessary preparations for this plan, which is aimed at restoring public confidence in the rupiah," the President said.

Soeharto also quoted experts who said that the country's businessmen had parked some US$80 billion in offshore funds. However, he reminded the audience about the need to check the report's accuracy.

"If it is true, it's better that the money be brought home to help cash-strapped companies to enable them to service their debts," he said.

The government had to find Rp 32 trillion ($6.03 billion) to service its debt and the interest on it next year, he said.

"We must also provide about Rp 15 trillion to subsidize fuel oil and food including wheat," said Soeharto.

The government earlier scrapped the National Logistic Bureau's monopoly on wheat trading but continues to subsidize wheat for public consumption.

He also briefed the entrepreneurs on the progress of the People's Consultative Assembly (MPR) sessions, which concluded last week.

"I received a report that (the MPR Working Committee) has completed 99 percent of the draft State Policy Guidelines," he said.

Businessman Sofjan Wanandi told Soeharto that the plan to offer savings in dollars might negatively affect public confidence in the rupiah if the plan was launched without adequate preparation.

"I think this needs to be explained so that the public's confidence in the rupiah remains (and) to avoid giving the impression that psychologically the government itself does not have confidence in the rupiah.

"This is only a temporary policy to attract those who put their money in overseas banks with only two percent interest," he said.

Also at the 90-minute talks were Minister/State Secretary Moerdiono, Minister of Industry and Trade Tunky Ariwibowo, Minister of Finance Mar'ie Muhammad and Governor of Bank Indonesia Soedradjad Djiwandono.

Several heads of conglomerates were also present, including Soedono Salim, Prayogo Pangestu, Sudwikatmono, chairman of Sinar Mas Group Eka Tjipta Widjaja, and Soeharto's children Siti Hardiyanti Rukmana, Siti Hedijati Prabowo and Bambang Trihatmodjo. (prb)